Speaking at the Indonesian Fintech Summit today, Binance CEO CZ said more companies will be at stake in the coming weeks following the FTX bankruptcy.
Binance CEO says more bankruptcy news coming next week
cryptocoin.com As you follow, FTX recently announced that it went bankrupt. Founder and CEO Sam Bankman-Fried has also officially resigned. John J. Ray III will now take charge as the new CEO. The exchange announced today on its Twitter account that it has filed for Chapter 11 bankruptcy in the US. After the incident, Binance CEO says we will receive bankruptcy news from more companies next week. According to CZ, the cryptocurrency market is currently facing a crisis similar to the financial crash in 2008.
Press Release pic.twitter.com/rgxq3QSBqm
— FTX (@FTX_Official) November 11, 2022
All cryptocurrencies fell hard on the news of FTX’s bankruptcy and CEO Sam Bankman-Fried’s resignation. Bitcoin fell by about 7% to a 24-hour low of $16,351 in a short time. The drop partially reversed a major rally on Thursday, where lower-than-expected US CPI data in October gave Bitcoin investors some relief. However, Binance CEO says the effects of FTX will be felt in the coming days.
CZ says the FTX effect is not yet fully felt
CZ shared his experiences with SBF in the statements he made at the Indonesian Fintech Summit today. He said the bankruptcy would be devastating for the cryptocurrency market. The Binance CEO sees the bankruptcy of his biggest competitor as a disaster. In some of his statements at the conference, he stated that we will begin to feel the effects of the FTX crisis in the coming days. CZ also says we’re going to experience this effectively in a chained way.
Is the cryptocurrency market going into crisis?
CZ likens current events in the market to the 2008 financial crisis. He stated that this has been strengthened by the events of this week. Some of the statements he made at the conference included the following statements:
With FTX dropping, we will see cascading effects. Especially those close to the FTX ecosystem will be adversely affected.
The Binance CEO is also not convinced that the current state of FTX is an isolated incident. Zhao said, “A few other projects will be in similar situations. I think it will take a few weeks for most of them to come out.” The collapse of FTX is the first time the crypto market has faced it. Also, reports of misuse of client funds and Binance backing out of a deal to buy the now discredited platform only continue to break trust. Despite his dire prediction, Zhao reassured listeners that the fate of the cryptocurrency was not determined that way. On the contrary, Zhao said, “the market will heal itself.”
Binance CZ says FTX doesn’t have enough funds for Voyager deal
Binance CEO was skeptical of FTX’s move to buy Voyager, one of the companies that went bankrupt during the market crash in May. He said that FTX did not have enough funds for the $1.4 million acquisition. According to CZ, we will see more companies failing like Voyager in the coming weeks. But despite this pessimistic outlook, CZ still remains optimistic for the future. He says he is confident the market will recover.
